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Selected transactions on the books of Crane Corporation follow:

May $1,2023$

Dec. $31$

Jan. $1,2024$

April $1$

Dec. $31$

Bonds payable with a par value of $$800,000,$ which are dated January $1,2023,$ are sold at $108$ plus accrued interest. The price is at May $1,2023.$ They are coupon bonds, bear interest at $14\%($payable annually at January $1),$ and mature on January $1,2033.($Use an interest expense account for accrued interest.$)$

Adjusting entries are made to record the accrued interest on the bonds and the amortization of the proper amount of premium. $($Use straight$-$line amortization.$)$

Interest on the bonds is paid.

Par value bonds of $$560,000$ are repurchased at $104$ plus accrued interest and are retired. Amortization of the bond premium is recorded only for the bonds that are repurchased. $($Bond premium for the remainder of the bonds is to be amortized only at the end of the year.$)$

Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of premium amortized.

$($a$)$ Assume that Crane follows ASPE. Prepare the journal entries for the transactions above. $($Round answers to $0$ decimal places, e$.$g$.5,275.$ Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries. Do not round intermediate calculations.$)$

Date

Account Titles and Explanation

Debit

Credit

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